Yongxing Materials 2021 net profit soared more than 238% Lithium Carbonate is the "first hero"!

SMM, January 19: on the evening of January 18, Yongxing issued a performance forecast for 2021, saying that the company expects to achieve a net profit of 872 million to 923 million yuan for shareholders belonging to listed companies in 2021, an increase of 238 percent over the same period last year.

For the reasons for the substantial increase in the company's performance, Yongxing material said that during the reporting period, on the basis of the steady development of the special steel new materials business, the production and marketing of lithium new energy business (lithium carbonate) was good, and its profitability was greatly improved. this is also the company's main profit growth point.

As we all know, in 2021, with the rapid development of new energy vehicles and energy storage industry, downstream customers' demand for lithium salt is growing strongly, driving the price of lithium carbonate to rise continuously. Especially in the fourth quarter of 2021, the price of lithium carbonate rose rapidly, while Yongxing material in the case of rapid rise in the price of lithium salt materials, the cost remained in a more reasonable range, and the profit increased significantly.

According to SMM historical data, the price of lithium carbonate has risen significantly in the past year, from 53000 yuan / ton at the beginning of the year to 275000 yuan / ton at the end of the year.

"Click to view the historical price of SMM Metals.

Since the beginning of 2022, the price of lithium carbonate is even more dusty, which can almost be described as "rising all the time". According to the spot price of SMM, as of January 18, the average spot price of domestic battery-grade lithium carbonate rose to 334000 yuan / ton, up 56000 yuan / ton, or 20.14%, compared with the beginning of 2022.

The rise in lithium carbonate is far from over, and Australian lithium miner Allkem predicted on Tuesday that the price of lithium carbonate would rise by a further 80 per cent in the second half of the fiscal year ending in June compared with the first half of the fiscal year due to a surge in demand for metals used in electric car battery production. The Australian fiscal year is from July 1 of each year to June 30 of the following year.

In addition, Allkem also admitted that the global surge in novel coronavirus cases related to O'Micron may continue to affect the operation and mining activities of the lithium mining industry in the near future. It added that the start of production and first production of its Sal De Vida mine had been postponed to the second half of 2023 due to mining permits and related problems caused by the outbreak.

On the same day, Rio Tinto also said that the first output of its lithium mine project in Serbia had been delayed by one year to 2027 because of government delays in key approvals and private protests over environmental issues.

At a time of increasing demand for spodumene concentrate and lithium carbonate in the development of automobile electrification, SMM predicts that from 2021 to 2022, the supply of lithium carbonate in China will be limited by overseas resource production capacity, and there will be a supply gap of about 7% in 2022. The annual average price will significantly rise to about 280000 yuan / ton, and the high price may reach about 350000 yuan / ton. "View details